Henry Bros. Electronics, Inc. Reports Second Quarter 2008 Results

FAIR LAWN, N.J. , Aug. 14 /PRNewswire-FirstCall/ -- Henry Bros . Electronics, Inc. (Amex: HBE), a turnkey provider of technology-based integrated electronic security solutions, today announced results for the second quarter ended June 30, 2008...


FAIR LAWN, N.J. , Aug. 14 /PRNewswire-FirstCall/ -- Henry Bros . Electronics, Inc. (Amex: HBE), a turnkey provider of technology-based integrated electronic security solutions, today announced results for the second quarter ended June 30, 2008 .

The Company reported revenue of $15.1 million for the second quarter of 2008, representing an increase of 11.9% over revenue of $13.5 million for the same period a year ago. The New Jersey subsidiary experienced a significant increase in revenue as a result of work completed on contracts for several large public agencies in the New York Metropolitan area. Revenue improvement from the Arizona and Virginia subsidiaries also contributed to the Company's top-line growth in the second quarter of 2008.

The Company reported net income of $337,261, or $0.06 per diluted share, for the second quarter ended June 30, 2008 , representing an increase of 125% over net income of $150,044, or $0.03 per diluted share, in the comparable period of 2007.

Revenue for the six-month period ended June 30, 2008 was $31.0 million, representing an increase of 27.2% over revenue of $24.4 million for the six months ended June 30, 2007 . Net income for the 2008 six-month period was $621,218, or $0.10 per diluted share, compared to a net loss of $(670,371), or $(0.12) per diluted share, for the 2007 six-month period.

Backlog as of June 30, 2008 was $17.6 million, compared to $26.6 million reported at December 31, 2007 . The decline in backlog is a primary result of work completed on several large agency jobs in the New York Metropolitan area which were booked in the second quarter of 2007. The Company expects to receive initial purchase orders in the amount of approximately $5.8 million under our previously disclosed subcontractor agreement with L-3 prior to the end of August 2008 .

Jim Henry , CEO of Henry Bros . Electronics, stated, "We are pleased to report continued success on a number of large-scale, multi-year integrated security projects. Our ability to customize security solutions for large businesses and enterprises located in major metropolitan areas has enhanced our market position, elevating our Company to the forefront of our nation's most critical security jobs."

Henry concluded, "Through our work with L-3 Communications, we are now playing an integral role in the implementation of a Tactical Video Capture System planned for installation at 15 U.S. Marine bases in the USA and abroad. This project, valued at $326 million, of which we have a significant work share, brings the most state-of-the-art technology to the USMC. Our role in this important endeavor demonstrates the value of our solutions and services, and has the power to bring forth additional opportunities in the future to serve the needs of other large enterprises that require the most advanced video surveillance systems."

Excluding the effect from the L-3 Contract discussed above, the Company is reiterating its forecasted operating profit margin of 4% on $65 million of revenue for fiscal 2008. In addition, the Company is currently in the process of finalizing an increase in its Revolving Credit Agreement with TD Banknorth from $4 million to $8 million in order to support these new projects and growth initiatives.

Conference Call Information:

Henry Bros . Electronics will be hosting a conference call on Thursday, August 14, 2008 , at 11:00 a.m. ET . To participate on the call, please use the following number and conference code:

A replay of the call will be available from Thursday, August 14, 2008 at 12:00 p.m., ET , through Sunday, September 14, 2008 at 11:59 p.m., ET . To access the replay, please call (800) 642-1687 in the United States or (706) 645-9291 outside the United States . To access the replay, users will need to enter the following code: 58917161.

About Henry Bros . Electronics, Inc.

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